Sony Announces Net Loss Of $390.5 Million In Q1
Sony announced today that they have lost $390.5 million (¥37.1 billion) this quarter. The losses are blamed on consumers cutting back spending on TV and technology. Sony has also blamed currency rates, specifically a stronger Yen that is causing inflation in Japan and cuts away from revenue overseas.
Sony sales dropped 19.2% from a year earlier. This quarter’s sales were $16.8 billion (¥1.60 trillion). Operating loss was $267.77 million (¥25.7 billion). Demand for products such as Bravia TVs, Handycam video camcorders, and cyber-shot digital cameras, and Walkman music players have dropped. There has not been much demand for Sony’s consoles compared to their competitors either.
Sony sold about 1.1 million PlayStation 3 consoles and 1.3 million PlayStation Portables in the quarter. During the same quarter last year, Sony sold 1.6 million PS3 consoles and 3.7 million PSPs.
From a positive standpoint, Sony motion pictures saw a 6.5% increase in quarterly sales. The movie Angels & Demons helped trigger the sales increase.
Sony CEO Howard Stringer said that he expects the company to eliminate 16,000 jobs and cut costs in their 57 factories.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry